The project sponsors are the ultimate shareholders of the Company: Ole B. Hansen (50%), Carsten Thomsen (33%) and Claus Baltsersen (17%), all Danish farmers. The shareholders hold their shares through their respective private holding companies: Tofthøj Agro A/S in Denmark, Asket A/S in Denmark, and Sommerset Holding Limited in Cyprus.

The total project cost is estimated at EUR86.5 million and the proposed IFC’s investment is straight equity of up to EUR16.8 million.

24.96 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	24.96

* These investment figures are indicative

The Project will be implemented in Pskov and Leningrad regions in Russia. All land is farm land located in rural areas.

- Support Russia's under-developed pork sector to modernize, achieve self-sufficiency & international competiveness. - Support an efficient producer with solid track record to expand efficient production in Russia, introduce high European standards of livestock production, showcase clean production (CP) and energy efficiency (EE) to other pork producers. - Support the frontier Pskov region (per capita GDP about 60% below national average) to revitalize waste land, develop competitive pig and crop production, create jobs in remote rural area, contribute to local community. The Project will help alleviate insufficient domestic pig production, substitute imports, increase fresh meat supply (vs. frozen imported meat), and pass cost savings to consumers. The Project will rehabilitate the crop land that has not been cultivated for 15-20 year and create jobs in the rural area with high level of unemployment. As pork production remains highly supported by the Government (interest subsidized loans, tax benefits, import tariffs), additional domestic production will also result in losses for the Government and local tax payers, which is expected to be compensated by increased corporate tax payment, benefits to employees, local economy and communities. Overall, the medium to long term developmental impact can be expected as: (i) Russia has excellent long term fundamentals for pig production (feed availability, climate, large tracts of land for waste disposal); (ii) current production costs in the country are not globally competitive but can be improved with better technology and livestock management standards introduced by efficient producers; and (iii) the country is a net importer and may be able to compete on an import parity basis.

IFC is uniquely able to: (i) engage with the Company without taking control; (ii) offer much needed risk capital to strengthen the Company's equity base and enable it to capture more business opportunities; (iii) help the Company focus on core business and rationalize its legal structure; (iv) help the Company improve corporate governance, provide stamp of approval that could enhance the Company's value and future marketability; and (v) establish a long-term partnership to support the Company's future development, the approach other financiers typically do not take.

The proposed project is being developed in accordance with national regulatory requirements and European Standards by an experienced Sponsor committed to good environmental and social management. The project will result in the implementation of a vertical integrated farm production from initial crop generation till final animal delivery to slaughtering facilities. Due respect for sustainable animal/crop land balance and animal welfare according to future EU rules are included. The project follows international labor standards, and has integrated farm waste utilization to avoid significant pollution. With no indication of impacts related to Performance Standards 5 through 8 and only readily mitigated environmental issues under Performance Standards 1 through 4, this is a Category B project. The full Environmental and Social Review Summary (ESRS) can be found using this link: